DCIT, Circle-1(1), Bhubaneswar, Bhubaneswar V. Sarita Devi Agarwalla, Dhenkanal

ITA 323/CTK/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7584 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 26-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 08-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: M UDAYPURIABINOD AGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO.323/CTK/2014 ASSESSMENT YEAR : 2009 - 2010 DCIT, CIRCLE - 1(1), BHUBANESWAR. VS. SMT. SARITA DEVI AGARWAL, C/O. KALINGA JUTE PRODUCTS PVT LTD.,ANANDA BAZAR, DHENKANAL. PAN/GIR NO. ACEPA 5314 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI M.UDAYPURIA/BINOD AGARWAL, AR REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 2 6 /10 / 2016 DATE OF PRONOUNCEMENT : 26 /10 / 2016 O R D E R THIS I S AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - 1, BHUBANESWAR , DATED 26.5.2014 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 2. THE SOLE GROUND OF APPEAL TAKEN BY T HE REVENUE IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.31,08,450/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED BANK DEPOSITS U/S.69A OF THE ACT WITHOUT CORROBORATING EVIDENCES PRODUCE D BY THE ASSESSEE TO SUBSTANTIATE HER CLAIM. 2 ITA NO.323/CTK/2014 ASSESSMENT YEAR :2009 - 2010 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER ADDED AN AMOUNT OF RS.31,08,759/ - AS UNEXPLAINED BANK DEPOSITS. THE ASSESSING OFFICER OBSERVED THAT VARIOUS AMOUNTS WERE CREDITED TO THE BANK ACCOUNT IN CENTRAL BANK OF INDIA, BRABOURNE ROAD BRANCH, KOLKATA TOTALLING TO RS.31,08,759/ - . THE SAID A MOUNT HAS BEEN ON ACCOUNT OF SALES MADE TO KALINGA JUTE PRODUCTS (P) LTD. THE ASSESSEE ALSO CLAIMS TO HAVE PAID VARIOUS AMOUNTS BY CHEQUES TOTALLING TO RS.30,19,861/ - TO M/S. N.SETHIA & CO., WHICH HAS BEEN DEBITED IN THE SAME BANK ACCOUNT. THE ASSESSEE P RODUCED VARIOUS DOCUMENTS IN SUPPORT OF PURCHASE OF JUTE FROM M/S. N. SETHIA & CO., WHICH WAS SOLD TO KALINGA JUTE PRODUCTS (P) LTD.,. THE ASSESSING OFFICER FOUND VARIOUS DEFECTS IN RESPECT OF JUTE PURCHASES. THEREFORE, THE ASSESSING OFFICER ADDED RS.31, 08,759/ - TO THE INCOME OF THE ASSESSEE AS UNEXPLAINED BANK DEPOSITS. 4. BEFORE THE LD CIT (A), THE ASSESSEE SUBMITTED AS UNDER: 1. THE CASE WAS REOPENED U/S.148 OF THE INCOME TAX ACT. 2 C O M PLIANCE WAS MADE AND REASONS FOR REOPENING WERE ASKED TO BE GIVEN. 3 REASONS WERE COMMUNICATED. 4. ON DATE OF HEARING AS FIXED, N ECESSARY COMPLIANCE WAS MADE AND URGED THAT THE REASONS FOR WHICH CASE WAS REOPENED WERE NOT CORRE CT AND THE ALLEGED INCOME WAS DULY DISCLOSED BY THE ASSESSEE IN ITS RETURN OF I NCOME. 5. THEREAFTER MANY FISHING ENQUIRIES WERE STARTED TO NAIL THE ASSESSEE. THE HAZIRA FILED BY ASSESSEE WILL BE EVIDENCE. 6. HOWEVER, THE ASSESSEE CO - OPERATED FULLY IN THE ASSESSMENT PROCEEDINGS AND FILED ALL THE DETAILS. 7. THE ASSES SEE HAS SHOWN A TRADING TRANSACTION IN RAW JUTE LAST YEAR I .E ASST. YEAR 2008 - 09 AND INCOME FROM TRADING WITH DETAILS WERE FILED. 3 ITA NO.323/CTK/2014 ASSESSMENT YEAR :2009 - 2010 8. THE LEARNED ASSESSING OFFICER DECLARED THE TRANSACTION OF EARLIER YEAR AS SHAM AND FALSE AND PAYMENT MADE TO SUPPLIER AND PAYMENT RECEIVED FROM PURCHASER WERE DOUBTED. THE ASSESSEE FILED ALL DETAILS LIKE CONFIRMATION LETTER, BANK STATEMENTS, BILLS AND VOUCHERS BUT WERE NOT BELIEVED BY ASSESSING OFFICER. THE PAYMENT MADE AND RECEIVED WERE THROUGH BANKING CHANNELS DULY CONFIRMED BY THE RESPECTIVE PARTIES WHO WERE IDENTIFIABLE, WERE INCOME TAX ASSESSEE AND PAYMENT WERE MADE RELATED TO A TRADING OF LAST YEAR. 9. NO EVIDENCE FIND FAVOUR WITH THE ASSESSING OFFICER. HE HELD PAYMENT RECEIVED FROM PURCHASER AS CASH/ CREDIT AND MADE AN ADDITION OF RS.31,08,759/ - . 10. THAT THE REASONS FOR WHICH PROCEEDING U/S.147 WAS INITIATED WAS TOTALLY - IGNORED AND BY MAKING FISHING ENQUIRES, MADE ADDITIONS RELATING TO E TRANSACTION OF LAST YEAR WHICH WERE NEITHER DISCLOSED NOR CANCELLED IN THE CONCERNED YEAR WHICH WAS BEYOND THE POWER AND JURISDICTION OF THE ASSESSING OFFICER. 11. THE ADDITION IS TOTALLY ILLEGAL, MISCONCEIVED AND BEYOND THE JURISDICTION OF THE ASSESSING OFFICER, AND .SHOULD BE DELETED AND PROCEEDING SHOULD BE DECLARED NULL AND VOID. 12. VARIOUS CASE LAWS (LIST FURNISHED) ARE HEREWITH CITED IN FAVOUR OF THE ABOVE SUBMISSIONS. (A) RANBAXY LABORATORIES LTD. - VRS. - CIT 336 ITR 136 DELHI HIGH COURT. ( B) ..... SUN PHARMACEUTICALS INDUSTRIES ITD. - VRS. - DY.C.I.T. 2013 353 ITR 450 GUJRAT HIGH COURT. (C) CIT - VRS. - DOUBLE DOT FINANCE LTD. 2013 214 TAXMAN 47 BOMBAY HIGH COURT. (D) ACU - VRS. - MAJOR DEEPAK MEHERA, 344 ITR 641 CHHATISGARH HIGH COURT. (E) CIT VS LIVING MEDIA INDIA LTD., 358 ITR. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, LD CIT(A) DELETED THE ADDITION BY OBSERVING AS UNDER : I HAVE CONSIDERED THE MATTER CAREFULLY. THE AO HAS POINTED OUT VARIOUS DISCREPANCIES IN THE BILLS DRAWN BY N. SETHIA & CO. IN RESPECT OF 4 ITA NO.323/CTK/2014 ASSESSMENT YEAR :2009 - 2010 PUR CHASES MADE BY THE APPELLANT RAISING DOUBTS ABOUT THE PURCHASES MADE BY THE APPELLANT. HOWEVER, SUCH MISTAKES OR DISCREPANCIES MAY RAISE DOUBTS ABOUT THE PURCHASES BUT THESE ARE NOT SUFFICIENT TO HOLD THE PURCHASES BOGUS. THERE HAVE BEEN PAYMENTS FOR THE P URCHASES MADE THROUGH BANK, BILLS HAVE BEEN RAISED, THE PARTIES ARE GENUINE AND THE SALES HAVE NOT BEEN DISPROVED. THE PURCHASES AND SALES HAVE BEEN CONFIRMED BY THE PARTIES AND PAYMENTS HAVE BEEN MADE OR RECEIVED THROUGH BANKING CHANNELS. UNDER SUCH CIRCU MSTANCES, SOME DISCREPANCIES OR U NUSUAL FEATURES IN SOME BILLS WO ULD NOT MAKE THE PURCHASES BOGUS. THE AO HOWEVER HAS ADDED THE SALES PROCEEDS AS UNEXPLAINED BANK DEPOSITS AND NOT DISALLOWED THE PURCHASES MADE. THE UNEXPLAINED BANK DEPOSITS AMOUNTING TO RS .31,08,759/ - ARE IN FACT RECEIPTS FOR SALES AND SUCH RECEIPTS HAVE COME THROUGH THE BANKING CHANNEL AND COLLECTED THROUGH CLEARING. SUCH RECEIPTS ARE IN RESPECT OF SALES MADE BY THE APPELLANT TO M/S. KALINGA JUTE PRODUCTS (P) LTD. ACCORDINGLY, THE AMOUNT O F RS.31,08,759/ - CANNOT BE CONSIDERED AS UNEXPLAINED BANK DEPOSITS SINCE THE SAME HAS BEEN RECEIVED FROM M/S. KALIRIGA JUTE PRODUCTS (P) LTD. FOR SALES MADE. IN VIEW OF THE SAME, THE ADDITION MADE BY THE AO IS INCORRECT AND HENCE DELETED. SINCE THE ADDITIO N HAS BEEN DELETED, THE GROUND OF APPEAL TAKEN AGAINST INITIATION OF PROCEEDINGS U/S.147 IS NOT ADJUDICATED UPON. 6. LD D.R. SUPPORTED THE ORDER OF THE ASSESSING OFFICER BUT COULD NOT POINT OUT ANY SPECIFIC ERROR IN THE ABOVE QUOTED ORDER OF THE LD CIT(A). 7. THEREFORE, I DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD CIT(A) , WHICH IS HEREBY CONFIRMED. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 26 /10 /2016 IN THE PRESENCE OF PARTIES. ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 26 /10 /2016 B.K.PARIDA, SPS 5 ITA NO.323/CTK/2014 ASSESSMENT YEAR :2009 - 2010 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK DATE INITIAL 1. DRAFT DICTATED ON 26 / 10/16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 26 / 10/16 (DICTATION PAD HAS BEEN ENCLOSED ALONG WITH ORIGINAL FILE) SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER A M 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. A M 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS /PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE H.C. 9. DATE ON WHICH FILE GOES TO THE SR. PS 10. DATE OF DISPATCH OF ORDER. 1. THE APPELLANT : DCIT, CIRCLE - 1(1), BHUBANESWAR. 2. THE RESPONDENT. SMT. SARITA DEVI AGARWAL, C/O. KALINGA JUTE PRODUCTS PVT LTD.,ANANDA BAZAR, DHENKANAL 3. THE CIT(A) , CUTTACK 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 6 ITA NO.323/CTK/2014 ASSESSMENT YEAR :2009 - 2010